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TMI Blog1990 (5) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of Nylon yarn falling under Tariff Item 18 by using duty paid indigenous or Imported virgin caprolactum as the principal raw material among various raw materials. During the course of manufacture of Nylon yarn, certain wastes arise. This waste contains depolymerised caprolactum. It appeared that the wastes are reacted with the help of steam and is allowed to melt. The melt is passed through the condensation/concentration Tank and fed in the water wash Tanks. The wash water collected from polymerisation/De-polymerisation is distilled and passed through the vessel for monomer and monomer goes back recycled with it. During this process caprolactum is recovered from the waste in vessesl for Monomer and the monomer (Caprolactum) then goes b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntial ingredient in order to be dutiable under the Schedule to Central Excise Tariff Act, 1985. The recovered caprolactum from waste as such could not be sold and the burden lies on the Department to prove that it was marketable or marketed. But there is no evidence to show that commodity as such was marketed or marketable. 5. The sum and substance of the arguments of Shri Narasimha Murthy, learned J.D.R. for the revenue, is that in view of the development in technology, this product is well known by name in the commercial field and in view of the fact that it was captively consumed, irrespective of the fact whether it was marketed or not, is subject to duty as it finds a place in the Tariff Entry. 6. We gave our anxious consideration t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility should be satisfied even in respect of transient item which is captively consumed in the manufacture of other finished product and in particular it held that marketability is an essential ingredient in order to be dutiable under the Schedule to the Central Excise Tariff Act. Simply because certain articles fall within the Schedule it would not be dutiable under the Excise Law if the said article is not goods known to the market. It has also been held that though actual sale is not necessary, the evidence must be produced by the Department that the goods in fact are capable of being marketed. The Department has not adduced any such evidence in this case. Under these circumstances, following the ratio of the decision of the Apex Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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